What is the difference between a revocable and irrevocable trust and when would it be advantageous to use one over the other?
Nutley, New Jersey estate planning and probate attorney, Brad Micklin, talks about the difference between revocable and irrevocable trusts and how you should use them.
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Well there are a lot of differences between revocable and irrevocable trusts and there are a lot of reasons why you might choose one over the other. Essentially, irrevocable trust the main benefits are you retain control over your property and you still can pass it quickly to somebody upon your death. The drawback, one, that you don’t receive credit or protection so if you’re trying to save it from lawsuits it’s not protected. And there’s also no tax savings in your estate planning.
Irrevocable trust the disadvantage is you lose control over the current and future use of your assets but you have creditor protection and there’s less if no possible estate tax issues that will come from the property that you transfer to it.